Audi India has expressed its desire for potential reductions in import taxes on electric vehicles (EVs) in the country, stating that it would enable the German carmaker to explore different models and pricing strategies. Balbir Singh Dhillon, the head of Audi India, mentioned that a window of three to five years with reduced duties would facilitate experimentation to determine which models are suitable for the Indian market and aid in setting competitive prices.
The Indian government has been working on a new EV policy to reduce import taxes for automakers willing to engage in local manufacturing. Although Dhillon confirmed that discussions are underway regarding the assembly of some Audi electric cars in India, he did not provide specific details on the timeline or the models that may be involved.
Audi is keen to catch up with its competitors, BMW and Mercedes, in the shift towards electric mobility. At present, Audi India only manufactures internal combustion engines for its petrol cars locally. In contrast, six out of 16 electric car models offered by Audi India are imported and sold in the country, with prices ranging from $136,000 to $234,000.
The Indian government has set ambitious targets for the adoption of electric vehicles, aiming to increase their sales to 30% by 2030, compared to the current levels of just 2%. However, luxury electric vehicles represent only a fraction of the current market.
To encourage greater investment in electric vehicles, India’s commerce minister, Piyush Goyal, has stated that the government will collaborate with the industry to develop a new policy.
Sources:
– Reuters: https://www.reuters.com/article/audi-india/audi-india-sees-cheaper-ev-imports-helping-experiment-in-pricey-market-idUSKBN2JO20H
– TOI Auto: https://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/2024-ktm-390-duke-no-clickbait-walkaround/87720209